Explain the change in the translation adjustment

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Case: Red Hat, Inc. reported comprehensive income from 2013 to 2015 as follows ($ thousands):
 2013 2014  2015 
Net income $150,204 $178,292 $180,201
Unrealized loss on available-for-sale investments  (795)  (437) (1)
Foreign currency translation (2,810) (3,945) (56,163)
Comprehensive income $148,189 $181,800 $124,039

Required:

Which method does Red Hat use to translate foreign subsidiaries? Why?

Explain the change in the translation adjustment from 2013 to 2015.

Reference no: EM133360368

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